A Primary Advantage of Organizing Economic Activity Within Firms Is

question 13

Multiple Choice

A primary advantage of organizing economic activity within firms is the

• A) ability to coordinate highly complex tasks to allow for specialized division of labor.
• B) low administrative costs because of reduced bureaucracy.
• C) eradication of the principal-agent problem.
• D) high-powered incentive to work as salaried employees for an existing firm.

---

Definitions:

Differentiating

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Brand Positioning

Marketing strategy that aims to create a unique impression in the customer's mind so that the customer associates something specific and desirable with the brand that is distinct from the rest of the marketplace.

Local Responsiveness

Adjusting or creating an approach to meet the differentiated needs of local markets, of local customers, of local stakeholders such as government officials and employees, and of suppliers and distributors.

Adjusting Approach

Adapting strategies or behaviors to better align with the current context or to meet the needs of different situations or stakeholders.